MILPITAS, Calif. — (BUSINESS WIRE) — January 14, 2014 —
Linear Technology Corporation (NASDAQ:
LLTC), a leading, independent
manufacturer of high performance linear integrated circuits, today
reported financial results for the fiscal quarter ended December 29,
2013. Quarterly revenues of $334.6 million for the second quarter of
fiscal year 2014 decreased $5.8 million or 1.7% from the previous
quarter's revenue of $340.4 million and increased $29.3 million or 9.6%
over $305.3 million reported in the second quarter of fiscal year 2013.
Net income of $104.8 million decreased $3.1 million or 2.9% from the
first quarter of fiscal year 2014 and increased $15.9 million or 17.9%
over the second quarter of fiscal year 2013. Diluted earnings per share
of $0.44 per share in the second quarter of fiscal year 2014 decreased
$0.01 per share or 2.2% from the first quarter of fiscal year 2014 and
increased $0.06 per share or 15.8% over the second quarter of fiscal
year 2013.

During the second quarter the Company's cash, cash equivalents and
marketable securities increased by $128.1 million over the first quarter
of fiscal year 2014 to $1,718 million net of spending $6.5 million to
purchase 163,000 shares of its common stock in the open market. The
Company's Board of Directors approved an increase in the Company's
quarterly dividend from $0.26 per share to $0.27 per share. This marked
the 22nd consecutive year the Company has increased its dividend. A cash
dividend of $0.27 per share will be paid on February 26, 2014 to
stockholders of record on February 14, 2014.

According to Lothar Maier, CEO, “As we noted last quarter, our December
quarter is generally a slower quarter for us as the automotive and
industrial markets tend to be weaker. Though automotive continued to
grow modestly, the industrial market was down for us and we ended the
quarter with total revenues down sequentially 1.7%, in line with the
midpoint of our guidance as the quarter generally went as expected. We
are encouraged that this decline was modest compared to recent years and
that we grew revenues year-over-year by 9.6% over the second quarter of
fiscal 2013. In addition, we were able to hold gross margin flat at
75.3% and we managed expenses accordingly to minimize the impact on
earnings, which were down 2.9% or one cent per share. Looking ahead, our
book-to-bill ratio was slightly positive in the December quarter and we
typically see improved bookings momentum in the automotive and
industrial markets in the March quarter. Accordingly, we are currently
forecasting revenues to grow sequentially by 3% to 6% in our fiscal
third quarter.”

Except for historical information contained herein, the matters set
forth in this press release are forward-looking statements. In
particular, the statements regarding the demand for our products, our
customers' ordering patterns and the anticipated trends in our sales and
profits are forward-looking statements. The forward-looking statements
are dependent on certain risks and uncertainties, including such
factors, among others, as the timing, volume and pricing of new orders
received and shipped, the timely introduction of new processes and
products, general and country specific conditions in the world economy
and financial markets and other factors described in our 10-K for the
year ended June 30, 2013.

Company officials will be discussing these results in greater detail in
a conference call tomorrow, Wednesday, January 15, 2014 at 8:30 a.m.
Pacific Coast Time. Those investors wishing to listen in may call
719-325-4764, or toll free 800-967-7144 before 8:15 a.m. to be included
in the audience. There will be a live webcast of this conference call
that can be accessed through
www.linear.comor
www.streetevents.com.
A replay of the conference call will be available from January 15, 2014
through January 22, 2014. You may access the archive by calling (719)
457-0820 or toll free (888) 203-1112 and entering reservation #1599786.
An archive of the webcast will also be available at
www.linear.com
and
www.streetevents.com
as of January 22, 2014 until the second quarter earnings release next
year.

Linear Technology Corporation, a member of the S&P 500, has been
designing, manufacturing and marketing a broad line of high performance
analog integrated circuits for major companies worldwide for three
decades. The Company's products provide an essential bridge between our
analog world and the digital electronics in communications, networking,
industrial, automotive, computer, medical, instrumentation, consumer,
and military and aerospace systems. Linear Technology produces power
management, data conversion, signal conditioning, RF and interface ICs,
µModule subsystems, and wireless sensor network products. For more
information, visit
www.linear.com.